New Delhi: The Income Tax Department on Tuesday issued a clarification on the proposed Income Tax Bill 2025, saying that it is only meant to simplify language and remove redundant or outdated provisions, and does not propose any change in tax rates. 

The clarification came after several media reports and social media posts claimed that the new bill would alter Long Term Capital Gains (LTCG) tax rates for certain categories of taxpayers.

Some reports even suggested that the existing tax exemptions on equity investments could be removed.

"There are news articles circulating on various media platforms that the new Income Tax Bill, 2025 proposes to change tax rates on LTCG for certain categories of taxpayers. It is clarified that the Income Tax Bill, 2025 aims at language simplification and removal of redundant/obsolete provisions," the department said in an official post on social media platform X.

"It does not seek to change any rates of taxes. Any ambiguity in this respect shall be duly addressed during the passing of the Bill," the department added.

The statement makes it clear that the new legislation is focused on making the law easier to understand and streamlining the existing provisions, without introducing any changes in the current tax structure.

The new Income Tax Bill was introduced in the Lok Sabha during the Budget Session in February this year.

After that, it was sent to a select committee of the Lok Sabha, which has recently submitted its report.

The bill aims to replace the current Income Tax Act, 1961, with the main goal of making tax laws simpler, more modern, and technology-friendly.

This is the first time that the tax law has been completely rewritten. (IANS)